Poverty types: Working age without children

The analysis of the working age adults without children life
stage revealed four poverty types:

The four segments above show the proportions of low income
households in the 'working age families without children' life
stage that are in each poverty type.

This chapter now goes on to describe the households in each
poverty type, explaining the combination of indicators that
households face. Given knowledge of how particular forms of poverty
interact for households, there is also discussion of how policy
makers and service providers can reach and help households in each
poverty type.

Working age without children: 'Insecure
singles'

Who they are

This group is similar to the 'insecure singles' type described
in 'Poverty in Perspective'. They are one of the most vulnerable
groups in Scotland, suffering from multiple disadvantages across
health, education, housing and employment. The high rate of
previous homelessness amongst this group (59%) is distinctive - the
next highest rate for the cohort is much lower (20%, among
'socially detached singles'). People who are homeless are at an
increased risk of becoming homeless again in the future. Around
half of this group also suffer from health issues, which could
include mental health problems and substance abuse issues, both of
which are associated with a higher risk of homelessness and poor
housing. 65% of insecure singles are men, and over half are between
25 and 44 years of age.

How to reach them

Identifying this group is likely to be difficult. As people in
this group are childless, they do not use many of the services that
can identify parents who are struggling, such as childcare
services. Furthermore, if a person in this group become homeless
once again (
e.g. after falling behind on
their rent and being evicted) they might fall off the radar, so to
speak.

Breakdown of poverty indicators for the 'insecure
singles'

One way of identifying this group is through registered social
landlords (
RSLs) - 72%
of this group are social tenants. Other outreach vehicles include
job centres, given the high level of benefit use, and also debt
advice organisations and homelessness charities, and health and
substance abuse support groups who might have been in contact with
this group during periods of homelessness. Finally, food banks
might have contact with this group.

How to help them

In order to reduce poverty for this group, the services
described above need to work together to provide effective support.
This group is a classic "multiple user" of many agencies -
statutory and voluntary. The priority may not be to invest more
resources to support this group, as much as to better coordinate
and rationalise what is already in place. Identifying this group,
and agencies working together to recognise they are dealing with
the same people from different points of view, is the first step
towards better coordination.

Interventions for this group should also focus on employment
support - although the kind of support needed will depend on age.
65% of this group are aged 16-44, and the remainder 45 or over.
Older and younger 'insecure singles' are likely to experience
different challenges. Younger people in the group may have never
worked, having left school and taken up benefits. They will need
support aimed at enabling them to take their first steps into the
world of work, which will include a focus on building their
confidence. On the other hand, older (working age) people in the
group are more likely to have worked before, but have possibly been
made redundant, separated from a partner or experienced a bout of
poor health, and need help to re-enter work and re-build their
confidence. People with health problems in this group, whether
young or old, will also need further support to help them manage
their condition in the workplace.

Socio-demographic characteristics of the 'insecure
singles'

Welfare reform poses a particular risk to people in this group,
given that the vast majority of their income comes from benefits,
and they are highly vulnerable on a number of other indicators.

Working age without children: 'Socially detached
singles'

Who they are

'Detached singles' and older 'insecure singles' appear to have
very similar experiences. They are workless, mainly single people
living in social housing, receiving the majority of their income
from benefits. They do not have savings to act as a buffer when
their income drops. Both groups have a similar gender split: 60% of
detached singles are men.

However, there are some subtle differences between the groups.
'Detached singles' are less likely to have internet access or to
participate in cultural activities, making them more disconnected.
They are also slightly less likely to say they are struggling
financially, and slightly less likely to live in the most deprived
neighbourhoods. It is possible that these differences are simply a
result of the fact that they are older than 'insecure singles' -
69% are above the age of 45. 'Insecure singles' may become
'Detached singles' as they get older.

Breakdown of poverty indicators for the 'socially detached
singles'

How to reach them

As with the 'insecure singles' group, this group could be
identified through
RSLs, job
centres, food banks and debt advice organisations. A much smaller
proportion in this group have been homeless, but a higher
proportion have health problems (likely due to their older age
profile), so health services are an additional identification
route. The former employers of people in this group may be able to
help identify them, too.

How to help them

The key challenge for this group is finding work that they can
sustain until retirement. Given the health conditions experienced
by this group, employment support needs to be integrated with
health advice if it is to help them re-enter the workforce.

The support for this group should not end once they are back in
work. Being close to retirement age, this group should be helped to
prepare for a smooth transition to life after work - planning for
the financial and legal consequences of leaving work, and also for
the social consequences. The latter is particularly important for
men, whose social lives and identity are often closely linked to
the work place.

Socio-demographic characteristics of the 'socially detached
singles'

Working age without children: 'New poor'

Who they are

Three quarters of this group are in the bottom two income
deciles, despite the group showing few signs of deprivation on the
other poverty indicators. The majority are homeowners (or buying
their home with a mortgage), 68% are in work, and few live in
deprived neighbourhoods. This suggests that these households may
have experienced reductions in income only recently. A number of
factors could be behind this, such as age (the majority of this
group are aged 45 and over), ill health and fluctuations in the
wider economy. 17% of people in this group are carers, which could
explain why a proportion of this group work part time, and might be
another reason behind a drop in income for some. The vast majority
of the 'new poor' have savings - dipping into these might enable
them to cope in the short term, but may not be sustainable.

How to reach them

Similar to the 'Working home owners' child poverty type, the
'new poor' may not be found using services typically associated
with low incomes. Their lack of children means they cannot be
reached through childcare centres and schools. The best way of
identifying this group, therefore, might be through their employers
and health services.

How to help them

The key focus of interventions for this group should be on
financial management in the short term, and boosting the number of
hours they work in the medium term.

They may benefit from financial management while they adjust to
their reduced income. They may have savings, but it is possible
that they are not making the most of them, not having needed to in
order to maintain a good standard of living in the past.

Benefits maximisation might also be effective for them, as they
may not be claiming all the benefits they are entitled to - such as
tax credits, Income Support for those in work and Employment and
Support Allowance for those unable to work due to ill health (or
Universal Credit when it replaces these benefits). People
experiencing a sudden drop in income may not be familiar with the
sources of financial support available, having never needed it
before.

A longer term strategy for protecting the 'new poor' is to help
them increase the number of hours they work. As some of this group
have health conditions and/or caring responsibilities, employers
may need to offer flexible working in order for this to be
possible. However, the 'new poor' are relatively well qualified
(51% have level 2 qualifications or above, and 23% have a degree)
and are likely to be experienced, so there are good business
reasons for offering flexibility.

Socio-demographic characteristics of the 'new
poor'

Working age without children: 'Generation
rent'

Who they are

These young, well qualified singles tend to live in rented
accommodation (over half in private rented), and two thirds live
alone. There is an equal split of women and men. Some may be
students whose low income is due to them studying, or having
recently finished their studies and not yet entering the world of
work. They do not tend to experience significant financial
difficulties.

How to reach them

The students in this group may be relatively easy to reach -
student and more general youth outreach activities are well
developed in Scotland, and preventative work might take place in
universities. However, the Independent Advisor on Poverty to the
Scottish Government has recommended targeting support to help young
people not destined for Higher Education find worthwhile employment
(Scottish Government, 2016). Consideration needs to be given to how
best to reach these young people if, after leaving school, they
become private renters and may only become 'visible' to support
once they become longer term unemployed. Working early on with
schools, as well as
FE colleges and
employers/apprentice organisations, will also be important.

Breakdown of poverty indicators for the 'generation rent'

How to help them

One might argue that, for this group, poverty is transient -
students while still studying or soon to enter work do have low
incomes, yet their poverty is a precursor to far better incomes and
standards of living. Therefore, we might consider this group a low
priority when it comes to poverty strategies. That said, this group
are mainly renters, probably with little savings. Some have higher
educational qualifications (with the social and other benefits
attending a university may bring), but many do not. They remain,
therefore, financially vulnerable. For those who cannot rely on
their families for financial support, their relatively comfortable
circumstances are not sustainable over the long term and depend
entirely on securing decent employment.

Ensuring this group have access to financial advice and careers
advice early on will be crucial in ensuring their poverty does not
become a longer term, entrenched problem. With a labour market that
may suffer in the run up and post-Brexit, under-employment or
over-qualification may become more of an issue and well qualified
young people may find themselves unable to translate their skills
into well paid employment. Support for those not entering Higher
Education but perhaps continuing their training in other ways will
be vital, through a credible vocational and apprenticeship offer
and strong careers advice to create clear pathways into work.

This group are also vulnerable to rent rises in the urban
centres they primarily live in, and unable to accumulate savings
needed to get onto the housing ladder. Affordable housing and
opportunities for shared ownership will also be an important
preventative measure, giving this group a level of resilience
against a turbulent private rental market, and helping to lift them
out of poverty as and when their incomes increase.